Are you finding it difficult to run your business while staying organized? Do you constantly stress over looming deadlines? Are you not able to keep track of your numbers? If you answered yes to any or all of these questions, it might be time to hire an accountant for your small business. Keep reading for 7 signs you need an accountant.
1. You’re not keeping track of receipts
Keeping track of receipts can be one of the most daunting tasks a business owner is forced to do. If not done properly, your taxes could be in jeopardy and could end up costing more money.
2. You’ve reached the limits of using spreadsheet software to manage your books.
Are you spending longer hours on excel process budgeting data manually, having to update formulas over and over, or saving multiple versions of your workbooks and having to keep track of which one is the current one? This means you’re possibly outgrowing your spreadsheet software.
3. You filed an extension for your taxes because you couldn’t get your books up-to-date in time.
When filing your taxes becomes cumbersome and you need an extension – it may be time to seek professional help. Filing an extension does not mean you get to delay in paying if you end up owing money either; you’ll need to estimate your tax due and pay 98% of it. If not, you could be liable for penalties of late-payments.
4. You can’t keep track of all your financial documents.
Keeping up with your business is enough of a job as it is, keeping track of all your financial documents could be another full time job. Tracking expenses daily, making sure which ones could qualify as deductions and purchasing expensive software that is supposed to help you are all reasons a professional accountant will help relieve the burden and ensure you can maximize your deductions when it comes time to filing your tax return.
5. You want to grow your business but are afraid to invest more in it without a clear idea of how much cash flow you have coming in.
Cash flow is the life-line of every business, according to an Intuit study of 3,500 companies with 100 employees or less, 60% of small businesses struggle with cash flow issues on a regular basis and 40% say it’s restricted their growth.
6. Your business is growing quickly and you don’t know how much help you’ll need when tax season rolls around.
A growing business is a good thing, but without a proper tax strategy, you could end up owing a lot more than anticipated due to that growth. A professional accountant will guide you along the way with advice on how to maximize your tax savings throughout the year.
7. You have major changes on the horizon (like expansion or new investment).
Is your company expanding or did you make a large investment? An accountant can help you assess the financial impact of these changes, provide guidance on tax implications, and assist in creating a financial plan that aligns with your business goals.
Having an accountant as a trusted advisor for your business is essential for its success and growth as they provide valuable insights and recommendations that can help you make informed business decisions, improve your bottom line, and maximize your profits. In conclusion, investing in an accountant is an investment in your business.